Brokers market Nord Gold with valuation of $4.3 bln-$5.7 bln; price may be lower
MOSCOW. Jan 25 (Interfax) - Brokers are marketing Nord Gold, which consolidates the gold producing assets of Severstal , with a valuation of $4.3 billion-$5.7 billion, sources at investment funds told Interfax.
"The tentative price range is $4.3 billion-$5.7 billion, according to the latest information," one of the sources said.
However, he suggested that the official price range, which is expected to be announced on Thursday, would be lower at $4 billion-$4.5 billion. He said the company would definitely not go below $4 billion.
Another source agreed that was "roughly" the range the brokers were showing. "I think the official guidance will be lower than the brokers," he said.
Credit Suisse, one of the IPO organizers, valued the company at $4.5 billion-$5.3 billion. The other organizers are Troika Dialog and Morgan Stanley.
Nord Gold includes eight operating assets in four countries (Russia, Kazakhstan, Guinea and Burkina-Faso) as well as a number of properties under exploration or being worked up.
RTS$#&: BRZL, CHMF, TROY